News Release: U.S. International Transactions

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FOR WIRE TRANSMISSION: 8:30 A.M. EDT, THURSDAY, SEPTEMBER 15, 2011

BEA 11-46

Sarah P. Scott:

(202) 606-9286

(Data)

U.S. International Transactions: Second Quarter 2011

Current Account

The U.S. current-account deficit—the combined balances on trade in
goods and services, income, and net unilateral current transfers—decreased to
$118.0 billion (preliminary) in the second quarter of 2011, from $119.6 billion
(revised) in the first quarter. The decrease was more than accounted for by
increases in the surplus on income and the surplus on services. Increases in
the deficit on goods and in net unilateral current transfers were partly
offsetting.
Goods and services
The deficit on goods and services increased to $145.0 billion in the
second quarter from $140.0 billion in the first.
Goods
The deficit on goods increased to $190.4 billion in the second quarter
from $182.2 billion in the first.
Goods exports increased to $373.1 billion from $361.5 billion. All major
end-use categories increased; industrial supplies and materials and capital
goods accounted for most of the increase. The increase in industrial supplies
and materials mostly reflected growth in petroleum and products and in
chemicals. Capital goods increased largely as a result of gains in machinery
and equipment (Table 2a).
Goods imports increased to $563.5 billion from $543.8 billion. Most
major end-use categories increased; nearly three-fourths of the increase was
accounted for by increases in industrial supplies and materials, mostly as a
result of growth in petroleum and products and in iron and steel products.
Capital goods rose as a result of growth in computers, peripherals, and parts.
A decrease in automotive vehicles, parts, and engines, primarily due to a drop
in passenger cars, was partly offsetting (Table 2a).
Services
The surplus on services increased to $45.4 billion in the second quarter
from $42.3 billion in the first.
Services receipts increased to $150.7 billion from $146.0 billion. The
largest increases were in travel and in other private services. Most of the
other services categories also increased.
Services payments increased to $105.2 billion from $103.8 billion. The
largest increases were in travel, in other transportation, and in other private
services.
Income
The surplus on income increased to $61.1 billion in the second quarter
from $52.7 billion in the first.
Investment income
Income receipts on U.S.-owned assets abroad increased to $191.6 billion from
$178.9 billion. The increase was mostly accounted for by increases in direct
investment receipts and in other private receipts (which consists of interest
and dividends).
Income payments on foreign-owned assets in the United States increased
to $128.2 billion from $124.0 billion. Most of the increase was accounted for
by an increase in direct investment payments.
Compensation of employees
Receipts for compensation of U.S. workers abroad remained at $1.4
billion. Payments for compensation of foreign workers in the United States
remained at $3.6 billion.
Unilateral current transfers
Net unilateral current transfers to foreigners were $34.2 billion in the
second quarter, up from $32.3 billion in the first. The increase was more than
accounted for by an increase in U.S. government grants.
Capital Account
Net capital account payments were $0.8 billion in the second quarter,
up from near zero over the previous two quarters.
Financial Account
Net financial inflows were $25.7 billion in the second quarter, down
from $156.1 billion in the first. The slowdown resulted from a steep reduction
in the growth of foreign-owned assets in the United States that more than
offset a reversal from an increase to a decrease in U.S.-owned assets abroad.
U.S.-owned assets abroad
U.S.-owned assets abroad decreased $22.9 billion in the second quarter,
following an increase of $334.4 billion in the first.
U.S. claims on foreigners reported by U.S. banks and securities brokers
decreased $195.7 billion in the second quarter, following an increase of $87.8
billion in the first. (Examples of these claims are U.S. banks’ deposits at
foreign banks and U.S. banks’ loans to foreigners.) Most of the decrease
resulted from a substantial decrease in claims for own accounts, particularly
in deposits abroad (Table 10a).
Net U.S. purchases of foreign securities were $30.1 billion in the
second quarter, following net purchases of $58.2 billion in the first. Net
purchases of foreign stocks slowed to $26.7 billion from $47.1 billion. Net
purchases of foreign bonds were $3.4 billion, down from $11.0 billion (Table 8a).
U.S. direct investment abroad was $134.1 billion in the second quarter,
up from $89.2 billion in the first. The increase resulted in large part from
increases in equity investment, along with smaller increases in intercompany
debt investment and reinvested earnings (Table 7a).
U.S. claims on unaffiliated foreigners reported by U.S. nonbanking
concerns increased $0.9 billion in the second quarter, following an increase of
$95.0 billion in the first.
U.S. official reserve assets increased $6.3 billion in the second
quarter, following an increase of $3.6 billion in the first. The increase was
mostly a result of an increase in the reserve position in the International
Monetary Fund.
U.S. government assets other than official reserve assets increased $1.4
billion in the second quarter, following an increase of $0.5 billion in the
first.
Foreign-owned assets in the United States
Foreign-owned assets in the United States increased $2.8 billion in the
second quarter, following an increase of $487.2 billion in the first.
U.S. liabilities to foreigners reported by U.S. banks and securities
brokers (other than foreign official assets) decreased $101.0 billion in the
second quarter, following an increase of $354.4 billion in the first. (Examples
of these liabilities are deposits of foreign residents at banks in the United
States and loans by banks abroad to banks in the United States.) All of the
decrease resulted from a decline in liabilities for own accounts, particularly
in loan positions from foreigners (Table 11a).
Net private foreign sales of U.S. Treasury securities were $63.8 billion
in the second quarter, a shift from net purchases of $3.5 billion in the first.
Net private foreign sales of U.S. securities other than U.S. Treasury
securities were $9.5 billion in the second quarter, up from $2.6 billion in the
first. Net foreign sales of U.S. federally sponsored agency bonds were $23.3
billion in the second quarter, down from $32.5 billion in the first. Net
foreign sales of U.S. corporate bonds were $13.9 billion, up from $4.3 billion.
Net foreign purchases of U.S. stocks decreased to $27.7 billion from $34.2
billion (Table 8a).
Foreign direct investment in the United States was $47.7 billion in the
second quarter, following investment of $28.5 billion in the first. Nearly all
of the increase resulted from increases in equity investment (Table 7a).
U.S. liabilities to unaffiliated foreigners reported by U.S. nonbanking
concerns increased $20.8 billion in the second quarter, following an increase of
$42.0 billion in the first.
Foreign official assets in the United States increased $94.6 billion in
the second quarter, following an increase of $48.8 billion in the first. The
increase was mostly due to net purchases of U.S. Treasury securities.
Net shipments of U.S. currency to foreign countries were $14.0 billion
in the second quarter, up from $12.6 billion in the first.
The statistical discrepancy—net errors and omissions in recorded
transactions—was $93.1 billion in the second quarter compared with -$36.4
billion in the first.
In the second quarter, the U.S. dollar depreciated 1.7 percent on a
trade-weighted quarterly average basis against a group of 7 major currencies.
(Data are based on Federal Reserve Statistical Release H.10.)
Revisions
The first-quarter 2011 international transactions are revised from
previously published statistics. The current-account deficit was revised up to
$119.6 billion from $119.3 billion. The goods deficit was revised down to $182.2
billion from $182.5 billion; the services surplus was revised up to $42.3 billion
from $41.7 billion; the income surplus was revised down to $52.7 billion from
$54.8 billion; and net outflows of unilateral current transfers were revised
down to $32.3 billion from $33.2 billion. Net financial inflows were revised to
$156.1 billion from $181.9 billion.
* * *
Release dates in 2011:
Fourth quarter and year 2010.................March 16, 2011 (Wednesday)
First quarter 2011.............................June 16, 2011 (Thursday)
Second quarter 2011.......................September 15, 2011 (Thursday)
Third quarter 2011.........................December 15, 2011 (Thursday)
* * *
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